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Goldman Sachs plans another round of job cuts for underperformers – FT

Goldman Sachs plans another round of job cuts for underperformers – FT

The Goldman Sachs logo is seen on the trading floor of the New York Stock Exchange (NYSE) in New York City, New York, US, November 17, 2021. REUTERS/Andrew Kelly/File Photo Obtain licensing rights

Sep 7 (Reuters) – Goldman Sachs is planning another round of job cuts for employees deemed to be underperforming, which could take place in late October, the Financial Times reported. mentioned on Thursday, according to people familiar with the matter.

The plan would typically result in between 1% and 5% of employees companywide losing their jobs, and Goldman is targeting a number at the lower end of the range in parts of its core investment and business banking divisions, according to the report.

This is an annual exercise the bank does, as part of performance reviews, according to a source familiar with the matter. The bank restarted the review last year after it was suspended during the pandemic in 2020 and 2021.

Reuters had previously reported, quoting sources, that the bank laid off 500 employees in September 2022.

Goldman Sachs did not immediately respond to a Reuters request for comment on the report.

In June, the managing directors of Goldman were invited to meetings to receive an ominous message: to take even more painful steps to cut costs.

Tightening the belt on the agenda for Goldman’s CEO meetings is another sign that the company’s ongoing drive to cut $1 billion in costs is now accelerating as managers target smaller and smaller line items and consider more job cuts.

Goldman cut staff by about 3,200 in the first quarter, in the biggest round of layoffs since the 2008 financial crisis. It also cut about 250 jobs in May.

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The Wall Street giant’s profits fell 60% in the second quarter, missing estimates, as writedowns on consumer business and real estate investments weighed on earnings.

(Reporting by Gopi Babu in Bengaluru and Saeed Azhar in New York; Prepared by Mohamed for the Arabic Bulletin) Edited by Rashmi Aish

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